Social advertising has been one of the growth stories of the past decade, with Facebook benefiting the most. Since earning $3.7bn in 2011, their revenue from ads has grown exponentially, generating nearly $86bn in 2020 alone.
But Covid-19 has seen a huge boom for social media platforms, with GroupM predicting a massive 20% rise in ad spend this year, with global revenues of £455.3bn.
Brands shifting their advertising budgets to digital has also seen record years for other platforms, Twitter’s year-on-year growth is at 74%, with Snap (Snapchat’s owner) up by 116% so far. TikTok has been downloaded 3bn times and is valued at over $200bn too.
But how do these brands capitalize on the shift in consumer habits? We’ve seen a digital reckoning over the last 18 months; people under lockdown restrictions using digital solutions as a necessity and they’ve now become a preference. So it’s a good time to try and get a bigger slice of a growing pie.
CTM adverts on Facebook
So, the next step is knowing how to challenge the market leaders. One of the big reasons Facebook dominates the market is the features that allow brands to engage consumers directly from an advert. Click-to-Messenger adverts give brands some of the highest engagement and conversion rates of all digital advertising.
We already know that modern consumers are looking for convenience and speed above all else when choosing how to communicate with brands, so offering an experience which addresses this need will attract more advertisers to a platform.
TikTok and Snapchat offer access to an audience that marketers often find it difficult to reach, a demographic of digital natives who are definitely looking for convenience and speed.
Rumours that TikTok is developing eCommerce features like product catalogues and live-stream shopping to rival Instagram, show they recognize the popularity the platform holds. We’ve also seen Twitter planning to add a “buy button” to its adverts.
These measures only go part of the way to creating seamless and exceptional consumer experiences. You can have the best product showcase or most visually engaging adverts, but without in-app conversational experiences, brands won’t see the returns they’re after.
98% of website and landing page visitors leave without making a purchase - in effect wasting 98c of every $1 spent on advertising. Brands want to find ways that increase conversions, and with tools like Facebook’s ‘Click-to-Messenger’ adverts that’s possible. 68% of people are more likely to make a purchase when they can use ‘convenient communications’, so making the whole sales process – from discovery to purchase to tracking – convenient and proactive for consumers is key to building an advertising platform that brands want to use.
We are entering a decade where building loyalty is going to be more important than acquiring new customers. This is as true for brands as it is for social advertising platforms looking to grow their advertising revenue. If they build tools that help companies to make more sales and retain happier customers with longer CLVs through exceptional conversational experiences across their lifecycle, that’s how TikTok, Snapchat or Twitter rival Facebook for digital advertising revenue. It’s not just about more users, it’s about creating an experience that keeps them coming back for more.
You can find out more here about building long-lasting customer relationships using messaging channels.